Fair Lending

OCC Releases Spring 2019 Semiannual Risk Perspective

On Tuesday, May 22nd, The Office of the Comptroller of the Currency (OCC)  published its Semiannual Risk Perspective for Spring 2019. Highlights include: Credit quality is strong when measured by traditional performance metrics, but successive years of growth, incremental easing in underwriting, risk layering, and building credit concentrations result in accumulated risk in loan portfolios. Operational risk [...]

May 22nd, 2019|

NY Launches State-Level Consumer Financial Protection Division

On April 29, 2019, the Department of Financial Services for the state of New York (NYFDS) formally announced the launch of the Consumer Protection and Financial Enforcement Division (CPFED) by appointing Katherine Lemire as its Executive Deputy Superintendent. According to the press release, the CPFED: “…is responsible for protecting and educating consumers and fighting consumer [...]

May 2nd, 2019|

ADI Announces Availability of Preliminary Snapshot of National 2018 HMDA Data

On March 29, 2019, the Consumer Financial Protection Bureau (CFPB) released the Modified Loan Application Registers (LARs) reflecting 2018 mortgage lending activity reported under the Home Mortgage Disclosure Act (HMDA). These reports represent the first release of HMDA data under the new rule implemented in 2015. Starting in 2018, under the 2015 HMDA Rule, financial [...]

April 19th, 2019|

Mortgage Lenders 73% More Likely to Deny Same-Sex Couples, per Recent Study

Researchers in Iowa State University's Ivy College of Business analyzed national mortgage data from 1990 to 2015 and found the approval rate for same-sex couples was three to eight percent lower than heterosexual couples. The study also included a smaller, focused dataset with more detail about applicants' work history and credit worthiness. Based on this [...]

April 18th, 2019|

Facebook Changes Ad Policies to Address Fair Lending, Housing Concerns

On March 19, 2019, Facebook announced the latest changes to its policies in response to regulatory concerns regarding its advertising platform. This platform allows advertisers to screen for prospective customers based on their demographics, interests and other attributes. Such targeting offers businesses the opportunity to enhance the performance of their advertising campaigns by focusing on [...]

March 21st, 2019|

OCC Fines Citibank for FHA Violations

On March 19, 2019 the OCC announced $25 million in civil monetary penalties against Citibank, N.A. (Citibank) related to Fair Housing Act (FHA) violations. As reported in October 2019, Citibank was under scrutiny by regulators for its “relationship pricing” program. Under this program, the bank offered mortgage interest rate and closing cost discounts to customers [...]

March 20th, 2019|

Liberty Bank Settles in Lawsuit Alleging Discriminatory Lending

Liberty Bank, based in Middletown, CT, has agreed to invest millions to make banking services and loans more available to people of color after settling a lawsuit that alleged the Middletown-based company was discriminating against minorities.  The agreement comes after the Connecticut Fair Housing Center and the National Consumer Law Center last fall filed a lawsuit [...]

March 8th, 2019|

Citigroup Under Scrutiny for Possible Fair Lending Violations

According to an exclusive report published by Reuters, Citigroup Inc. may be penalized for possible Fair Lending violations by the Office of the Comptroller of the Currency (OCC). The regulators' scrutiny is related to Citigroup's "relationship pricing" program that offered discounts on mortgage interest rates to customers based on their deposit and investment balances held [...]

October 16th, 2018|

How Controlling for Local Competitive Environments May Reduce Fair Lending Pricing Risk

Lenders operating across multiple metro areas, in ADI’s experience, provide their branches with national rate sheets through which they price first-lien mortgages. Despite the single rate sheet, the lender’s many branch managers confront different competitive environments and are often tasked with refining rate sheet-based pricing to meet local conditions and maximize loan originations. Branch Manager [...]

July 11th, 2018|

2016 HMDA Data Highlights [Infographic]

On September 28, 2017, the Federal Financial Institutions Examination Council (FFIEC) announced the availability of 2016 mortgage lending data submitted in compliance with the Home Mortgage Disclosure Act (HMDA). This database of mortgage activity is relied upon by regulators, examiners, academics, industry leaders, and members of the general public to analyze the performance of mortgage lenders with regard [...]

October 5th, 2017|